The Globe and Mail reports in its Wednesday edition that BMO and Scotiabank expect loan-loss reserves to keep climbing as consumers reel under the strain of tougher economic conditions, with relief on the horizon if central banks cut interest rates later this year. The Globe's Stefanie Marotta writes that the banks reported first-quarter earnings Tuesday, booking higher-than-expected provisions for credit losses. As consumers and businesses grapple with higher interest rates and inflation, the risk of loan losses has risen across the banks, prompting the lenders to hike provisions, which crimp profits. In the quarter, Scotiabank set aside $962-million in provisions and BMO reserved $627-million -- more than the banks booked in the same quarter last year. The bulk of those provisions were put toward impaired loans. Scotiabank's impaired loan provisions were driven by higher reserves for personal loans, credit cards, auto lending and mortgages as consumers grapple with tougher economic conditions. At BMO, consumer loan losses in both Canada and the United States were bolstered by higher delinquencies in credit cards and other personal loans as an increase in customer insolvencies in Canada rose above prepandemic levels.